Determine the direct labor rate variance determine the, Accounting Basics

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Determine the direct labor rate variance determine the

Problem

Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $15.70 per hour. Production of 6,900 units required 20,290 hours at an hourly rate of $16.20 per hour.

(a) Determine the direct labor rate variance.
(b) Determine the direct labor time variance.
(c) Determine the cost variance.

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